Apart from apprehension and anxiety, the cryptocurrency technology has offered a lot more to the traditional banking and financial sectors. Bitcoin is increasingly being perceived as a threat to banking and financial industries. In order to counter the threat, the industry is focusing on the very underlying that powers bitcoin. Also, the introduction of Bitcoin, an open source distributed digital currency led to the creation of various crypto-token that either adopt the same technology as bitcoin or draw inspiration from it.
The underlying bitcoin technology is known as blockchain. Blockchain is a distributed ledger that records all transactions happening over the cryptocurrency network. It acts as a permanent record keeping repository. the use of blockchain is not confined to digital currency transactions and it can be programmed to do much more than that. The same concept is used by Ethereum, another crypto-token to create smart contract based applications among others.
Ethereum is the next best crypto-platform after Bitcoin. Ethereum network is also built on the blockchain similar to that of bitcoin in many ways. The crypto-token on Ethereum is called ether, which unlike bitcoin is used to pay for running and accessing computational services on the Ethereum platform. Ether can be bought, sold or traded on many cryptocurrency trading platforms and exchanges. But it can’t be used as a replacement for fiat currency like bitcoin. Smart Contracts Powered by Ethereum for Banking and Finance
The Smart Contracts capability of Ethereum is sought after by the banking and financial institutions as part of their attempts to improve their operations and services to counter the threat posed by Bitcoin and bitcoin-based financial services. By using smart contracts, financial institutions can automate their back office processes to a huge extent. These smart contracts on the Ethereum blockchain will be self-executing in nature, triggered by […]
